30-year fixed rate mortgage interest rates climbed at a steady pace throughout 2018 until the middle of November. Then they changed directions dropping to August levels to close out the year at 4.55%, as reported in Freddie Mac’s Primary Mortgage Market Survey. Is this recent dip in interest rates here to stay?
Now, almost a month into 2019, rates have continued their downward trend. Chief Economist at Freddie Mac, Sam Khater, notes this is great news for homebuyers.
“Mortgage rates declined to start the new year with the 30-year fixed-rate mortgage dipping to 4.51 percent. Low mortgage rates combined with decelerating home price growth should get prospective homebuyers excited to buy.”
Northern VA homebuyers have taken notice causing an up tick in multiple offers on current inventory on the market. The new listings that hit the market staged and prepared to sell can sell above asking price. Just this month, I have seen multiple new listing in Vienna and Fairfax bid above list price.
Will This Trend Continue?
It seems that forecasts from the Mortgage Bankers Association,Fannie Mae, and the National Association of Realtors, mortgage rates are expected to increase over the course of the year, but not at the 2018 pace. You can see the forecasts broken down by quarter below.
Just a small increase or decrease in mortgage interest rates can impact your monthly housing cost. If the sale or purchase of a home is in your near future, keep an eye on this. Here is an article that explains why, Northern VA Buyers and Sellers Should Watch These 2 Market Factors
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Originally posted on my Keeping Current Matters Blog.